Power (organisations)
Power in an organisation is the capacity to influence decisions, behaviour or outcomes. It can arise from formal position, control over resources, expertise, relationships or other circumstances. Formal authority is one source, but people without senior titles can exert substantial influence. The existence of power does not establish that its use is ethical, effective or within a legal right.
Worked example
A specialist influences an important technical decision because colleagues rely on her expertise, even though she cannot formally instruct the project manager. A budget holder may influence the same decision through resource allocation.
Common mistake
Do not define power solely as seniority or assume all influence is legitimate authority. Analyse the actual source and how it affects the decision.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |