The Ethical Use of Power

People are often uncomfortable discussing the topic of power, which implies that somehow they see the exercise of power as unseemly. On the contrary, the question is not whether power tactics are or are not ethical; rather, the question is which tactics are appropriate and which are not. The use of power in groups and companies is a fact of organizational life that all employees must accept. In doing so, however, all employees have a right to know that the exercise of power within the organization will be governed by ethical standards that prevent abuse or exploitation.

Several guidelines for the ethical use of power can be identified. These can be arranged according to our previous discussion of the five bases of power. As will be noted, several techniques are available that accomplish their aims without compromising ethical standards. For example, a manager using reward power can verify subordinate compliance with work directives, ensure that all requests are both feasible and reasonable, make only ethical or proper requests, offer rewards that are valued by employees, and ensure that all rewards for good performance are credible and reasonably attainable.

The Ethical Use of Power

Basis of Power Guidelines for Use
Referent power 
  • Treat subordinates fairly
  • Defend subordinates' interests
  • Be sensitive to subordinates' needs, feelings
  • Select subordinates similar to oneself
  • Engage in role modeling
Expert power 
  • Promote image of expertise
  • Maintain credibility
  • Act confident and decisive
  • Keep informed
  • Recognize employee concerns
  • Avoid threatening subordinates' self-esteem
Legitimate power    
  • Be cordial and polite
  • Be confident
  • Be clear and follow up to verify understanding
  • Make sure request is appropriate
  • Explain reasons for request
  • Follow proper channels
  • Exercise power regularly
  • Enforce compliance
  • Be sensitive to subordinates' concerns
Reward power
  • Verify compliance
  • Make feasible, reasonable requests
  • Make only ethical, proper requests
  • Offer rewards desired by subordinates
  • Offer only credible rewards
Coercive power    
  •  Inform subordinates of rules and penalties
  • Warn before punishing
  • Administer punishment consistently and uniformly
  • Understand the situation before acting
  • Maintain credibility
  • Fit punishment to the infraction
  • Punish in private

Even coercive power can be used without jeopardizing personal integrity. For example, a manager can make sure that all employees know the rules and penalties for rule infractions, provide warnings before punishing, administer punishments fairly and uniformly, and so forth. The point here is that managers have at their disposal numerous tactics that they can employ without crossing over into questionable managerial behavior. In view of the increasing number of lawsuits filed by employees for harmful practices, it seems wise for a manager to consider his behaviors before acting; this will help ensure the highest ethical standards.


Ethics in Practice

Investing the Challenger Disaster

The January 1986 explosion of the space shuttle Challenger, at a cost of seven lives, has been analyzed from several managerial standpoints: poor decision-making, poor management control, and poor leadership have all been blamed. We can also see in this tragedy an example of the unethical use of organizational power.

It has been determined that the explosion that doomed the space shuttle was caused by poorly designed seals on the booster rockets. The boosters were manufactured by Morton Thiokol, a major defense contractor. When the U.S. Congress initiated its investigation of the causes of the disaster, it found several disturbing facts. To begin with, several Morton Thiokol engineers had warned that the boosters were unsafe early in the design stage, but no one listened. Once the boosters were in production, engineers again warned of possible problems, but to no avail. The company kept the information quiet.

Equally disturbing was the fact that after two company engineers testified in the congressional hearing, they were abruptly transferred to undesirable assignments elsewhere in the company. When asked by Congress whether they thought their transfers were in retaliation for their whistleblowing, both engineers responded yes. One noted, "I feel I was set aside so I would not have contact with the people from NASA". The company had, in effect, used its power to try to isolate those who talked freely with the congressional investigators. In its defense, Morton Thiokol responded that it had demoted no one as a result of the investigation. "We've changed a lot of duties . . . because we're reorganizing," a management representative said.


Concept Check
  1. How is power used in organizations?
  2. How can managers use strategy to counteract the negative use of power in organizations?