Issue Of Power In Employee Management Essay


Discuss about the Issue of power in employee management putting in mind the positive impacts power can have out of an institutions workforce.


Introduction to Power

To enhance the understanding of organizational behavior and employee management, this report majorly focuses on evaluating the aspect of power. For instance, the main institution under observation will be the Elite Financial Services, Inc. Elite financial services mainly deal with consumer financial lending services. The type of loans offered in this institution range from auto to personal loans. Objectively, the institution looks forward to ensuring that it meets all the financial needs of its consumers. This report significantly addresses the issue of power in employee management putting in mind the positive impacts power can have out of an institutions workforce. There also exists factors that can compromise the power aspect of employee management; this report will also highlight the possible factors that can act as a barrier to ensuring the realization of power in. To restore and maintain power, this report further explains the necessary recommendations for addressing the employee management power barriers.

Problem Relating to Elite Financial Services Inc.

No separation of roles/Responsibility

Power is often a vital aspect of the management of employees. Power oriented behavior is consequently expected to have an impact on the general job performance, employee’s personal life and both organizational and managerial efficiency. Most importantly, the level of impact of power on an organization greatly depends on whether employees influence each other positively or negatively using the power they pose in the organization (Peter 2006). Recommendation: There is always a need to ensure a clear difference is drawn between power and authority to ensure effective use of power in employee management.

No granting employees power to make decisions

The positive outcomes of power in an organization mainly revolve around encouraging productivity and maximizing the employee’s potential to offer quality services. For instance, granting employees the power to make decisions will significantly have a boost on the respective employee’s confidence, and this will make them work extra harder to show exact correspondence to the powers granted to them (Hersey, Blanchard and Johnson 2007). Recommendation: Despite some employees having power, employees without power should be greatly involved in making decisions about their jobs.

Lack of Reward Power

Services, Inc. can similarly implement reward power to its employees. This is because, with reward power, the employees will be greatly motivated and confident to help in proper institutional decision making and work harder. More so, reward power to those exemplary in their fields or departments to improve supervision will enable efficient departmental productivity in the departments of the financial institution (Griffin and Moorhead 2011). Having efficiently running and interrelated bank departments will enable proper running of the financial institution because, there will be proper confidence, motivation and consequently hard work among the employees in a move to ensure the financial institution makes to its objective of meeting its consumer’s financial needs. Recommendations: Ensuring that every employee feels part of the institution and also feels included. This should happen regarding employees being allowed to make their opinions on policies governing the workplaces. Employees should also be involved when creating work changes in the organization. Employee inclusiveness in the institution should also be boosted through, ensuring every employee has access to the same knowledge and information as fast as every other employee to ensure the all the employees are focused towards a universal institution goal (Bass 2005).

Negative Power through Performance under managers’ Threats

There are still some cases of negative power. This happens when performance is greatly done under managerial threats. Threats like showing favor and not showing same appreciation to all hardworking employees, also, job loss and other unfair punishments may compromise the ability of the workforce to perform to the desired standards (Owens 1995).Recommendation

To ensure positive power outcomes, there should be measures put in place to prevent the negative use of power in the institution. This is because negative power use is still capable of being a great compromise to intended positive outcomes of power use in an institution. Employees under the management should all be treated with equal fairness and an employee’s significant effort in ensuring the efficient running of the institution should be equally appreciated without acts of favor for specific employees (Greenberg and Baron 2006).


Finally, ensuring positive power use in Elite Financial Services, Inc. can help the institution achieve its goal to meet consumer needs. Considering the positive impacts of power, the financial institution can ensure organizational efficiency in terms quality services offered to its consumers and proper organizational decisions regarding designing the perfect product to meet the institution’s consumer financial need. Since negativity in the workstation has a bad effect on the employee’s morale, the institution should also consider putting the necessary measure in place to avoid negative power use.


Bass, B., 2005. Leardership,psychology and organzational behavior. London.: Oxford University press.

Greenberg, J. and Baron, R., 2006. Understanding and managing the human sude. Behaviour in Organizations., 71-78.

Griffin, R. and Moorhead, G., 2011. Organizational behavior. Conteporary Views of Leardership in Organization., 216-225.

Hersey, P., Blanchard, K. and Johnson, D., 2007. Management of organizational behavior. Journal of organzational behavior., 103-117.

Owens, R., 1995. Organizational Behavior in education. Organizational theory, 14-24.

Peter, T., 2006. Implicit theories of organizational power and priming effect on managerial power sharing Decision. Journal of applied social psychology, 67-73

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