Lesson notes, exercises, downloads, and recommended reading are below the video. On mobile, the video will rescale when you play it.

Power in Organizations: The Power of Governance

In this video, we will look at the power organizations derive from their governance structures and processes.

Watching this video is worth 2 Management Courses CPD Points*.
(See below for more details)

The Nature of Organizations
This video is part of course module number 6.1.3
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 3: Power in Organizations

Other videos in this section include:
What is Power? https://youtu.be/mIlnEkzIiHs
Amitai Etzioni: How Organizations Secure Compliance https://youtu.be/4mSdeda8elk
Robin Fincham: Three Levels of Organizational Power https://youtu.be/Qcd_UcHGCe8
French and Raven: Social Power Bases in Organizations https://youtu.be/wLtTu8B0aek
Empowerment: The Organization Giving up its Power https://youtu.be/B4-_u51mffk

The imperative to do the right things, and to do things right gives organizations power over the people and organizational units within them

Many people with power are dedicated to serving the people who look to them for leadership and care. But, three human frailties are ever-present:
• Temptation to abuse their power, and gain more of what they desire
• Wish for an easy life, leading to skipping over the rules – or just carelessness
• Capacity to get things wrong and make mistakes, despite the best of motives

These are big challenges to the organizations we set up for the stewardship of our resources and the care of our people. So, we create one more set of structures to meet those challenges. And these are about governance.
Governance is the creation and maintenance of desirable norms of behavior. We do this through structures, practices, policies, rules, instructions, systems, constitutions, regulations, and laws.

The primary components of governance are:
• Direction-setting
• Decision-making
• Supervision and oversight

These are supported by three secondary activities:
• Setting ethical standards
• Creating and maintaining a culture – often supported by policies, procedures, and processes
• Ensuring transparency and accountability

In our previous video – https://youtu.be/Qcd_UcHGCe8 – we looked at Robin Fincham’s three levels of organizational power. The need for good governance materializes at each level:
1. At the Organizational Level…
The organization sets, maintains, and enforces its own rules
2. At the Institutional Level…
Society imposes rules and expectations on its organizations and their executives. Two good examples from here in the UK are:
a. The Nolan Principles of Public Life (1995)
b. The recommendations in the Cadbury report (1992) on the financial aspects of corporate governance
3. At the Processual Level…
The appointment of standing and ad hoc roles and committees to enforce governance (like audit committees and project sponsors) allows individuals to operate in governance mode and steer outcomes within the formal structures.

What are the governance structures and processes you have experienced? How do they exert power within the organizations? (3 MC CPD Points)

Free Resources
– CPD Tools – https://gum.co/MC-CPD
Paid resources
– Management Courses Onboarding Kit – https://gum.co/MC-ObK ($3)

– Understanding Organizations https://geni.us/oB774Do
– Images of Organization https://geni.us/hrOemEs
– Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL
– Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

Management Courses Continuing Professional Development (CPD) Points
You can record your Management Courses CPD points on our free, downloadable CPD record log.
Download it at: https://gum.co/MC-CPD

Each video has two levels of MC CPD points. For this video:
– If you simply watched the video, record 2 MC CPD points
– If you also carried out all of the recommended exercises, score a total of 5 MC CPD points

Links to our book recommendations are affiliated through Amazon

#Management #ManagementCourses #Governance


A Thorough Introduction to Organizational Culture [Compilation]
Introduction to Organizations: A Compilation of our Introductory Videos
What is Globalization?
Kim Cameron: Positive Organizational Scholarship
Charles Handy: Philosopher of Organizations
Edgar Schein: The Master of Organizational Culture
Harold Geneen: Data-driven Charismatic Organization
Chester Barnard: Organizations as Networks of People
Max Weber: The Father of Organizational Theory
How we Work: Geert Hofstede’s 6 Cross-Organization Cultural Dimensions
National Culture within an Organization: Geert Hofstede’s 6 Cultural Dimensions
Quinn and Cameron: Competing Values Model of Organizational Culture
Edgar Schein’s 3 Levels of Organizational Culture
Cultural Web: Johnson & Scholes on Where Culture Originates
Introduction to Organizational Culture
Empowerment: The Organization Giving up its Power
French and Raven: Social Power Bases in Organizations
Robin Fincham: Three Levels of Organizational Power
Amitai Etzioni: How Organizations Secure Compliance
Organizational Power: What is Power?
Virtual Organizations
Brian Robertson’s Holacracy Organizational Model
The Agile Organization
Adhocracy Organizational Model
Peter Senge’s Learning Organization
The Matrix Organization Model
Charles Handy’s Triple-I Company
Charles Handy’s Federal Organization Model
Charles Handy’s Shamrock Organization
Charles Handy’s Gods of Management
Henry Mintzberg’s 4 plus 2 Organizational Types
Edgar Schein’s Two Organizational Cultures
Why do we need Organizations? Structure vs Agility
The Features of Organizations: What an Organization Needs
Organizations as Processes: Understanding an Organization as a Set of Processes
Organizations as Structures: Understanding an Organization as a Structure
Morgan’s 8 Organizational Metaphors: An Organization is Like a…
What is an Organization? – the Nature of Organizations

Mike Clayton

About Mike Clayton 

Dr Mike Clayton is a (former) Project Manager and now a management educator. Having trained thousands of people at live workshops, seminars, and conferences, he now delivers training mainly via video. He has 14 books with international publishers and runs two successful YouTube channels. He is also the founder of OnlinePMCourses.com

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