The Power of Power in family business

Power of one of the primary human needs – closely linked to the need for achievement and for affiliation. The use and abuse of power has been the subject of much study through history. Power impacts not only the person subject to the power but also one wielding it – it leaves the person changed. This is why it is often said that power corrupts and absolute power corrupts absolutely.

Power is the authority to direct another person’s actions. It can be acquired or inherited power. Both knowledge and position bestow acquired power. However, while positions can be temporary, knowledge is loyal. Inherited power runs through royal lineages and political dynasties.

There are various kinds of power. There is power in relationships, religious power, power of wealth and status, political power

Power plays in organizations lead to much confusion. It manifests as group-ism, where a group of people isolate others and create insecurity. Sometimes, someone close to a person in power can also create an artificial boundary between that person and others.

There are many pitfalls of running businesses based on power. When people operate out of power, they are prone to taking large, uncalculated risks and therefore, a high probability of decisions going wrong.

To be continued...

 

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