Question

Which position or group of stakeholders has the most power in your organization or one with which you are familiar? Is their power obtained through formal positions, or does the culture of the organization lead to some people or groups having more power than others? How can the distribution of power be used to motivate employees? How can the organizational structure of a company impact the distribution of power?

Answer 1

The stakeholder group with the most power over the organization is the board, whose power is gained through formal positions.

How is the board of directors formed?

It is formed by the company's owners, investors and shareholders, who occupy the highest hierarchical positions and have the greatest decision-making power over organizational actions.

The distribution of power in a company can motivate employees, because leadership is able to influence positive attitudes.

Therefore, in some companies, there is also the decentralization of functions, generating greater autonomy in the lower hierarchical positions.

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