Power Divide in Indian Corporates

“Power” is simply the ability of a person to influence others and get things done. In the corporate
world, power can come from many sources, such as position, expertise, reputation, network, or
resources. However, power is not always evenly distributed among the stakeholders in an
organization. This can lead to various issues, such as lack of transparency and accountability,
resistance to change and innovation, conflict and polarization, and loss of talent and performance.

Issues Related to Power Divide

Lack of transparency and accountability:

When power is concentrated in the hands of a few, it can be difficult to hold them accountable for
their actions. This can lead to information asymmetry and a lack of trust among the stakeholders. For
example, some companies may not disclose their financial information to their shareholders or
regulators.

Resistance to change and innovation:

Those with more power may be reluctant to change, especially if it means giving up some control.
This can stifle innovation and prevent the company from adapting to new market conditions. For
example, some companies may stick to outdated business models or technologies even when better
alternatives are available.

Conflict and polarization:

Power imbalances can also lead to conflict and polarization among the stakeholders. Those with less
power may feel marginalized or exploited by those with more power. This can lead to resentment,
hostility, and even sabotage. For example, some employees may go on strike or protest against their
employers over issues such as wages, working conditions, or policies.

Loss of talent and performance:

When power is not distributed fairly, it can lead to demotivation and underperformance among the
stakeholders. Those who feel they are not being heard or valued may be less likely to contribute their
best work. For example, some companies may lose talented employees to their competitors due to
poor corporate culture.

Ways to Overcome Power Divide

There are several ways to overcome the issues related to the power divide in Indian corporates.
Some of these include:

Promoting good governance and ethics:

Good governance and ethics can ensure power is used fairly and responsibly. This may include
establishing clear rules and procedures, ensuring compliance with the law, and promoting
transparency and accountability.

Fostering a culture of collaboration and inclusion:

A collaborative and inclusive culture can help break down the barriers between different
stakeholders and promote a more level playing field. This means encouraging dialogue and feedback,
respecting diversity, and building trust.

Embrace change and innovation:

A willingness to embrace change and innovation can help to keep the company ahead of the curve
and prevent it from becoming stagnant. This means being open to new ideas, experimenting, and
learning from mistakes.

Developing talent and performance:

Investing in talent development and performance can help ensure the company has the skills and
capabilities to succeed. This includes providing training and development opportunities, recognizing
and rewarding achievements, and creating a supportive environment.

Conclusion

The power divide is a reality in Indian corporates, but it is not inevitable. Companies can create a
more equitable and productive workplace by adopting the abovementioned strategies. This will help
them attract and retain top talent, innovate more effectively, and compete more successfully in the
global marketplace.