The paper “ Rеlаtiоnshiр bеtwееn Роwеr аnd Risk Mаnаgеmеnt in Оrgаnisаtiоnаl Соntехt” is an impressive example of the case study on management. Organizations will always be exposed to risk because of the dynamic environment in which they are operating. This means that the management of organizations must be prepared to deal with any kind of risk; in fact, everyone in the organization must be aware of the kind of risk that their organization is likely to encounter in order to identify the risk and deal with it. But how effective this will be achieved depends on the distribution of power within the organization to deal with the perceived risks.
Different organizations have different organizational structures and these structures determine how power is spread among different departments or individuals and hence how prepared the different organs or individuals are to deal with risk. If the structure of the organization is such that every organ or individual is empowered to identify the risk areas, then it will generally be easier for such an organization to perceive the various risk areas and find ways to deal with the specific risks.
On the other hand, organizations in which power is located in a central area seem to be biased since the identification of risks will always be a province of a particular organ or department – meaning that some risks may not be noticed in time to avert them or deal with them effectively. Such distribution of power also implies that staff in other departments will be hesitant to report any risks they perceive since it will always be deemed that identifying risks is not within their line of duty.
In recognition of such differences, this essay discusses the relationship between power and risk management in the context of organizational settings. DEFINITION OF TERMSPowerPower is a term used to describe the potential capacity of a person or a department to persuade other people or other departments to act as they are directed (Daft 2009, p. 497). It can also be defined as the capability to accomplish objectives or outcomes that holders of power wish to meet (Daft 2009, p. 497).
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