The Perversions of Workplace Power

Today’s top executives have too much power and business is suffering as a result.

Feeling powerless, even over your daily schedule, is a major component of workplace stress. The inequalities of power in today’s organizations are too extreme. It’s time to restore a better balance.

Hierarchies are all about power. Those in the workplace are no different. The people at the top exercise most power; those at the bottom have least—or none at all. I think that this is a simple fact of life. Some idealists may hope for a power-free workplace, but I don’t see that happening. Someone has to accept responsibility for making decisions and issuing instructions for others to carry out, or there is likely to be something close to anarchy.

What causes problems is not so much the unequal distribution of power as the degree of that inequality.

In dictatorships, all the power is held by an individual—like Hitler or Stalin— and everyone else must obey. In oligarchies—like the old Soviet Union after Stalin, or China today—power is concentrated in the hands of a favored elite. In democracies, power is far more widely distributed. An elected few hold some of it, but only subject to legal and political checks. Some is given to middle-ranking officials. And even those at the bottom of the social ladder have a little power, even if they can only express it at voting time.

Organizations are, generally speaking, not democratic. But that shouldn’t mean that the only alternatives are dictatorships or oligarchies run for the exclusive benefit of an elite.

Organizations are, generally speaking, not democratic. But that shouldn’t mean that the only alternatives are dictatorships or oligarchies run for the exclusive benefit of an elite. There is a wide spectrum available: from the kind of quasi-democracy of some small, high-tech organizations to the rigid oligarchies of most old-established corporations—or the quasi-dictatorships run by high-profile, egotistical CEOs in recent years.

Those in power quickly come to resent any checks on their freedom to use it however they like. They try to remove checks on their freedom, and extend their power wherever they can. It’s said that all power corrupts. Maybe that’s true in one sense: it’s frustrating and irksome to have to submit your ideas and wishes to others for approval, especially if you fear they will be rejected or watered down. Top executives have usually spent years fighting for the power that they now exercise. They don’t like to give it up, even a little.

The more macho the organization, the more power matters. Organizations afflicted with Hamburger Management become obsessed by power struggles and ambition.

All the politics that go on in organizations are simply people jockeying for power and influence. It’s often easier to build greater informal power than to try to get the “rules” changed for your benefit. Influence and patronage, for example, are both potent sources of power, though neither appear on the organization chart. In nearly all organizations—especially large and complex ones—there is a constant process of shifting power structures. The more macho the organization, the more power matters. Organizations afflicted with Hamburger Management become obsessed by power struggles and ambition.

The reality is that there is only so much power available. To get more, you have to take it from others. In the 1990s and early 2000s, CEOs worked to take power for themselves and away from boards of directors and shareholders. Of late, shareholders have been trying to take it back. “Rising stars” try to sneak power away from established leaders. Divisions and departments “steal” power from the centre whenever they can. Central functions typically write policies and procedures that deny power to subsidiaries and operating divisions. And everyone in the upper reaches of a hierarchy takes power from the easiest source: those lower down.

When people feel that they have no power even over their own daily work schedules, the results are instantly stressful.

Powerlessness—real or imagined—is one of the major causes of frustration, stress, and burnout. When people feel that they have no power even over their own daily work schedules, the results are instantly stressful. In the past, only slaves and servants had no power in this way. To be without power is to be reduced to a paid slave. What we see today is even highly-educated professionals being treated as serfs, to be allocated crippling working hours without the resources or the freedom to decide how to live their own lives.

Disparities of power in the workplace are like wage disparities: everyone accepts that they will happen, but expects them to be held within reasonable limits.

We know that the CEO will earn far more than the lowest-paid worker. We accept that as reasonable. But when it is 400 or 500 times more, that looks very like an abuse. It’s the same with power. No one expects the workplace to be an idealized democracy. But when it becomes a dictatorship or an oligarchy based on a tiny elite, we smell the corrupting effects of an obsession with power.

In a civilized society, all power must be kept under constant scrutiny, and any abuses detected and dealt with before they can turn into abuses. What we have today are corporations with too much power held in the hands of too few people. It’s producing stressful, toxic, and uncivilized working conditions for too many people.

It’s time to slow down, take a hard look at what is happening, and get back to a better balance.

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